Title: Double Top
Description: Major Bearish Reversal Pattern
Description: Major Bearish Reversal Pattern
Lion - September 25, 2005 02:30 PM (GMT)
Pearl Energy demonstrates a typical Double-Top pattern breakout in late-Aug.
Can we escape quite a severe fall in this case? Probably yet again... Yes!
And again, two indicators can be used to identified the weakness shown just before the fall:
1st Divergence Occurance
1st divergence breakout (14days RSI) came as early approx. mid-July with a pretty hard fall on 19/07/05 but was immediately stopped along $1.73 neckline. Notice that CMF thou' weaken, still maintain along positive position (suggesting buying strength held on..). In this case, it tells that the volume indicator has yet to support the bearish view and this divergence ought to cast some doubts. The end result - price moving up to test previous high of $2 once again
2nd Divergence Occurance
2nd divergence breakout (14days RSI) came in a month later approx. mid-Aug while price is still above $1.73 . This time the warning is more severe. Thou' stock once again tested $2 high, however CMF sink lower and falls negative (suggesting sellers is now taking control).
A closing of $1.70 on 23/08/05 finally nails the bearish picture. As a general guide, the initial target objective of a Double-Top breakout (refer the two equal length violet lines)
As of now - 2005-09-25 daily chart ($1.65)
Having recovering from a low of $1.40 , stock is now challenging a previous Double-Top neckline support-turns-resist along $1.73. Coincidently, price also met resistance along the upper parallel channel-line.
With CMF still maintaining at negative zone, looks like it is not ready to crack the $1.73 resist. Gap-Up along $1.56 is a likely immediate support shud price falling thru' $1.63
However, any surge in downside volume would likely set a re-test along recent low of $1.40 again.
Can we escape quite a severe fall in this case? Probably yet again... Yes!
And again, two indicators can be used to identified the weakness shown just before the fall:
1st Divergence Occurance
1st divergence breakout (14days RSI) came as early approx. mid-July with a pretty hard fall on 19/07/05 but was immediately stopped along $1.73 neckline. Notice that CMF thou' weaken, still maintain along positive position (suggesting buying strength held on..). In this case, it tells that the volume indicator has yet to support the bearish view and this divergence ought to cast some doubts. The end result - price moving up to test previous high of $2 once again
2nd Divergence Occurance
2nd divergence breakout (14days RSI) came in a month later approx. mid-Aug while price is still above $1.73 . This time the warning is more severe. Thou' stock once again tested $2 high, however CMF sink lower and falls negative (suggesting sellers is now taking control).
A closing of $1.70 on 23/08/05 finally nails the bearish picture. As a general guide, the initial target objective of a Double-Top breakout (refer the two equal length violet lines)
As of now - 2005-09-25 daily chart ($1.65)
Having recovering from a low of $1.40 , stock is now challenging a previous Double-Top neckline support-turns-resist along $1.73. Coincidently, price also met resistance along the upper parallel channel-line.
With CMF still maintaining at negative zone, looks like it is not ready to crack the $1.73 resist. Gap-Up along $1.56 is a likely immediate support shud price falling thru' $1.63
However, any surge in downside volume would likely set a re-test along recent low of $1.40 again.
Lion - September 26, 2005 02:13 AM (GMT)
The onc mighty Jardine... ... ...
After gaining more than 200% in just over 2yrs, JMH is now looking tired.. really tired :(
Weekly divergence breakout came in as early on Apr '05 ubt price refuse to subside while forming a support along $17
A slightly new high (intra-week) was formed in late-Jul but MACD did not review a reverse situation serves a 2nd warning.
Finally, price took an intial fall below $17 on late-Aug, struggled to hold onto i the next couple of weeks but selling strength throws in deeper to force it at current price of $16.30
Once again, a Double-Top pattern was presented. Initial measuring target:
$17.00 - $(18.70 - 17.00) = $15.30
After gaining more than 200% in just over 2yrs, JMH is now looking tired.. really tired :(
Weekly divergence breakout came in as early on Apr '05 ubt price refuse to subside while forming a support along $17
A slightly new high (intra-week) was formed in late-Jul but MACD did not review a reverse situation serves a 2nd warning.
Finally, price took an intial fall below $17 on late-Aug, struggled to hold onto i the next couple of weeks but selling strength throws in deeper to force it at current price of $16.30
Once again, a Double-Top pattern was presented. Initial measuring target:
$17.00 - $(18.70 - 17.00) = $15.30